Seaman Furniture Co., Inc., Notice by publication is a poor and sometimes a hopeless substitute for actual service of notice. But when the names, interests and addresses of persons are unknown, plain necessity may cause a resort to publication. Courts have decided that it is impracticable to expect a debtor to publish notice in every newspaper a possible unknown creditor may read. The Chemetron Court further wrote that "[p]ublication in national newspapers is regularly deemed sufficient notice to unknown creditors, especially where supplemented, as here, with notice in papers of general circulation in locations where the debtor is conducting business." Chemetron, 72 F.3d at 348-49. at 661 (Publication of the bar date notice in two newspapersThe Wall Street Journal and The Richmond Times Dispatchfor a debtor with a nationwide business was deemed "constitutionally adequate."), Brown, 171 B. at 27 ("Since the national edition [of The New York Times] is sold throughout the country and can be purchased from any corner newspaper vendor here in Philadelphia, the Court finds that it is a reasonable means of alerting potential creditors of the need to file a proof of claim."). The Fourth Circuit has written: In bankruptcy, the court has an obligation not only to potential claimants, but also to existing claimants and the petitioner's stockholders. Here, the record reflects that additional publication in local or regional newspapers would have consumed a disproportionate share of the Debtors' resources. Courts considering a request for an enlargement of time based on excusable neglect consider four factors, as set forth by the United States Supreme Court in Pioneer Inv. when an act is required or allowed to be done at or within a specified period by these rules or by a notice given thereunder or by order of court, the court for cause shown may at any time in its discretion (1) with or without motion or notice order the period enlarged if the request therefore is made before the expiration of the period originally prescribed or as extended by a previous order, or (2) on motion made after the expiration of the specified period permit the act to be done where the failure to act was the result of excusable neglect. New Century Financial Corporation Bankruptcy New Filing Alert: Required Bankruptcy Report Regarding Schedules Of Assets And Liabilities, Statement Of Financial Affairs, Monthly Operating Report Or Other Periodic Report Moon and all the other vampire movies and TV shows like Vampire Diaries and True Blood so popular these days a question naturally arises: Do vampires need to do estate planning (assuming they are undead in the USA)??
The Third Circuit considered the issue of when a claim arises for purposes of the Bankruptcy Code in the decision Jeld-Wen, Inc. The Court agreed that "a prerequisite for recognizing a `claim' is that the claimant's exposure to a product giving rise to the `claim' occurred prepetition, even though the injury manifested after the reorganization." Grossman's, 607 F.3d at 125. Moreover, to the extent the Galope Claim is based upon allegations of fraud in connection with the Debtors' sale of the loan, the sale took place prior to the bankruptcy filing. Galope that occurred prior to the bankruptcy filing and, therefore, is a pre-petition claim. The issue of adequacy of the Debtors' Bar Date Notice arose previously during oral argument on a motion to dismiss (see White v. (In re New Century TRS Holdings, Inc.), , 511-514 (Bankr. Del.2011)), but I deferred ruling on the adequacy of the Bar Date Notice until completion of an evidentiary hearing on the matter. So our analysis was it was better to provide notice in The Wall Street Journal where maybe parties might expect to be finding a bar date notice or might look for a bar date notice because it has become more standard to advertise in The Wall Street Journal.... Debtors' counsel also testified that supplementary notice of the Bar Date was published in the Orange County Register because New Century's main office was located in Irvine, Orange County, California. (Id.) Since the Orange County Register was following the bankruptcy case in its reporting, the Debtors believed providing supplementary notice of the Bar Date in the Orange County Register would be likely to reach those individuals who were reading the Orange County Register to keep track of what was going on in the case. The testimony at the December 13, 2011 hearing established that the Debtors' business was nationwide.
Galope first argues that she should not be bound by the Bar Date because she didn't realize she had a claim against the Debtors for fraud until after the Bar Date had passed. After extensive review and consideration of relevant decisions in other circuits, the Third Circuit Court of Appeals held that a "claim," as defined by Bankruptcy Code § 101(5), "arises when an individual is exposed pre-petition to a product or other conduct giving rise to an injury, which underlies a `right to payment' under the Bankruptcy Code." Grossman's, 607 F.3d at 125. Applying the Third Circuit's holding in Grossman's to the case at bar establishes that the Galope Claim arose out of the Debtor's conduct toward Ms. She offered evidence of the daily circulation of the top twenty-five daily newspapers in the United States as of September 30, 2007, showing that the Orange County Register's circulation was listed as one of the lowest twenty-third on the listwith a circulation of 278,507. And The Wall Street Journal was a customary place to provide such legal notices. At the time of the bankruptcy filing, New Century was the largest private employer in Orange County. At the time the Bar Date Notice was being published, the Debtors considered the potential for unknown employee claims. It is well settled that constructive notice of the claims bar date by publication satisfies the requirements of due process for unknown creditors. "The proper inquiry in evaluating notice is whether a party acted reasonably in selecting means likely to inform persons affected, not whether each person actually received , 922, 924 (N. Ill.1990) (The Court rejected the tort claimants' argument that notice of the bar date in The Wall Street Journal was constitutionally insufficient because, due to their poor education, they had never even heard of The Wall Street Journal; instead, the Court held that publication notice in The Wall Street Journal was sufficient under the Due Process Clause of the United States Constitution). At the time notice of the Bar Date was being published, the Debtors were also concerned with costs. "Even when notice satisfies constitutional requirements, a creditor who does not receive actual noticeor who receives it but for some reason does not timely act upon itmay seek leave to file a late claim based on `excusable neglect.'" U.
The Modified Plan adopted, ratified and confirmed the New Century Liquidating Trust Agreement, dated as of August 1, 2008, which created the New Century Liquidating Trust (the "Trust") and appointed Alan M.
Russell on July 20, 2011 in the amount of $880,000 (secured) (the "Russell Claim"). Galope and other claimants filed responses in opposition to the Trustee's Claim Objection.
On August 26, 2011, the Trustee filed The New Century Liquidating Trust's Forty-Second Omnibus Objection to Claims Pursuant to 11 U.